| 1. |
An agency requests a taxpayer
identification number (TIN) from a 1099 vendor and one is not provided.
The agency must backup withhold on any 1099 payments made to this vendor.
Once backup withholding begins, the agency must continue to withhold until
the vendor provides his/her TIN. |
| 2. |
The IRS sends the agency
a CP2100 report and from that an agency sends a first B Notice to the vendor.
If the vendor does not respond by the date on the first B Notice to the
agency's request for certification of the TIN and/or the vendor's name,
the agency must begin to backup withhold on any 1099 payment made to this
vendor. Backup withholding continues until the vendor provides a
TIN and/or name certified on IRS Form W-9. |
| 3. |
The IRS sends the agency
a CP2100 report and from that an agency sends a second B Notice to the
vendor because that vendor was on the CP2100 report twice within a three-year
period. If the vendor does not respond by the date on the second
B notice to the agency's request, the agency must begin backup withholding
immediately. Backup withholding continues until the IRS notifies
the agency to stop withholding in the form of an IRS Letter 147C or SSA
Form 7028. |
| 4. |
A B Notice is returned to
the agency as "undeliverable." In this case, the agency should try
to get the correct address for the vendor and remail the notice.
If the agency cannot find the correct address, the agency should keep the
undelivered document for their records and start backup withholding on
future 1099 payments. |
